Tensions with Iran have negatively impacted US technology stocks. Last week, the combined market value of the "Magnificent Seven" tech giants plummeted by nearly $860 billion. Meta Platforms, Inc. saw a decline of over 11%, while Alphabet fell more than 8%. Microsoft dropped over 6%, with NVIDIA and Amazon.com both down nearly 3%. Tesla Motors declined 1.66%, while Apple registered a slight gain of 0.33%.
Iran's control of the Strait of Hormuz triggered a sharp rise in oil prices, intensifying investor concerns about energy supply. Investors now anticipate that the Federal Reserve will be unable to implement interest rate cuts this year due to rising inflation expectations, putting additional pressure on technology stocks.
Regarding the latest developments in Iran, US media reported on the 28th that the Pentagon is preparing for a "ground operation lasting several weeks" inside Iran. Unlike the full-scale invasion during the 2003 Iraq War, the Pentagon is reportedly planning a "surgical decapitation" tactic—avoiding territorial occupation and prolonged conflict by directly targeting Iran's oil lifeline, Kharg Island. The objective is to achieve a swift victory within weeks, reminiscent of the 1991 Gulf War. In response, Iranian expert assembly member Mesbahi Moghaddam stated that any US attempt to deploy troops to seize Iranian islands would be met with a "decisive counterattack" from Iran.
According to reports from Iran's Fars News Agency and other media outlets on the 29th, cited by Xinhua News Agency, Iran's Islamic Revolutionary Guard Corps launched missiles and drones targeting two companies in the Middle East associated with the US aerospace and defense industry.
Notably, Iranian Navy Commander Shahram Irani stated on the 29th that Iran is continuously monitoring the position, movements, and requests made to regional countries by the US aircraft carrier USS Lincoln and its strike group. Should the carrier group enter Iran's missile range, Iran is prepared to launch missiles.
The Pentagon's plan for a "swift ground victory" within weeks has been revealed. According to Xinhua, citing a report by The Washington Post on the 28th that referenced anonymous US officials, the Pentagon is preparing for a limited ground operation in Iran expected to last several weeks.
The report suggests any potential ground action would not constitute a full-scale invasion but could involve joint raids by special operations forces and conventional infantry units. Such missions could expose US forces to threats from Iranian drones, missiles, ground fire, and improvised explosive devices. The report also indicated it remains unclear to what extent the US President would approve the Pentagon's plans. Should the administration "choose to escalate operations," it would mark a dangerous new phase in the conflict, posing significantly higher risks to US forces than the previous four weeks.
Unlike the comprehensive invasion seen in the 2003 Iraq War, the Pentagon's current strategy employs a "precision decapitation" approach—eschewing territorial occupation and protracted warfare to directly strike Iran's critical oil infrastructure on Kharg Island, aiming for a rapid victory within weeks, echoing the 1991 Gulf War. However, international media and think tanks have warned that believing in a myth of defeating Iran in 42 days could plunge the US into a new strategic quagmire.
The Washington Post reported on the 28th that the Pentagon is planning a limited ground operation lasting several weeks, not a full-scale occupation. Thousands of Marines and paratroopers from the 82nd Airborne Division have already been deployed to the Middle East, with approximately 3,500 personnel from the 31st Marine Expeditionary Unit arriving in the central Persian Gulf aboard the amphibious assault ship USS Tripoli. The Wall Street Journal disclosed on the 26th that the US is considering deploying up to 10,000 additional ground troops, including infantry and armored units—a force size merely one percent of that used in the Iraq War, completely abandoning the previous model of mass troop deployment.
The Pentagon's strategic intent is clear: to avoid the high costs and uncontrollable risks of full-scale occupation by focusing instead on an "economic strangulation campaign." The core tactical objective targets Iran's southwestern oil-producing region and the strategic Strait of Hormuz, specifically aiming at Kharg Island, which handles over 90% of Iran's crude oil exports and is considered the lifeline of the Iranian economy.
A US military plan exposed by foreign media on the 25th indicates that controlling Kharg Island could sever 90% of Iran's oil exports, crippling its national economy with minimal military cost. Other reports state the plan explicitly identifies the invasion or blockade of Kharg Island and control of the Strait of Hormuz as core missions, with an operational timeline set for weeks, not months. CNN reported concurrently that Iran has detected US military movements, reinforcing air defense units and laying defensive mines on Kharg Island to prepare for potential amphibious assaults. The US military has previously conducted airstrikes against over 90 military targets on the island, deliberately sparing oil infrastructure, suggesting preparations for a future seizure of the island.
According to a report from the Islamic Republic News Agency on the 29th, cited by Xinhua, Iranian expert assembly member Mesbahi Moghaddam stated that any US attempt to send troops to seize Iranian islands would be met with a "decisive counterattack" from Iran. Moghaddam added that over the past 30 days, the Iranian public has continuously expressed support for the country's armed forces through gatherings and other means.
Separately, according to a March 29th report from Iranian media, the Speaker of the Iranian Parliament, Mohammad Bagher Ghalibaf, pointed out that while the US publicly talks about negotiations, it is secretly planning a ground offensive. Ghalibaf stated that Iran's armed forces are "awaiting" a US ground attack and will "punish" its regional allies.
The "Magnificent Seven" tech giants collectively lost over $860 billion in market value last week. The Iran conflict drove up energy prices, and the resulting anxiety swept through the US stock market. The Nasdaq Composite Index fell 3.23% for the week, its largest weekly decline since April 2025.
Large-cap technology stocks suffered significant losses, primarily due to growing market concerns that rising inflation will lead to interest rates remaining higher for longer. Additionally, company-specific headwinds further pressured the sector.
Overall, the "Magnificent Seven" saw their combined market capitalization shrink by more than $860 billion in one week.
Meta Platforms, Inc. recorded its worst weekly performance since October 2025, falling over 11%. Earlier in the week, the company lost a landmark social media lawsuit, and Wall Street is still assessing the impact.
Alphabet, the parent company of Google, closed the week down nearly 9%. A jury found both Meta and Alphabet, YouTube's parent company, negligent for failing to protect young users on their platforms.
Microsoft closed the week down 6.5%, on track for its worst quarterly performance since 2008, with software stocks being particularly hard hit.
NVIDIA and Amazon.com each fell approximately 3% last week, while Tesla Motors declined nearly 2% over the five trading days.
Semiconductor stocks rebounded on Friday, but SanDisk and Micron Technology still ended the week lower after sharp declines on Thursday.
This sell-off occurred after Google published new research outlining an algorithm designed to reduce artificial intelligence memory usage. This development impacted memory chips and the broader semiconductor sector. However, some analysts suggested the market may have misinterpreted the news, noting that Google's paper referred to the ultra-efficient AI memory compression algorithm TurboQuant, which only affects key-value caching during the inference phase and does not impact the high-bandwidth memory (HBM) used for model weights or AI training tasks.
Rising bond yields, driven by inflation expectations fueled by soaring oil prices, put pressure on growth stocks. Investors now expect the Federal Reserve will be unable to implement interest rate cuts this year, contrary to prior expectations.
Apple was the only stock among the "Magnificent Seven" to post a slight gain last week. This followed reports that Apple plans to open its Siri voice assistant to AI services competing with OpenAI's ChatGPT, potentially expanding beyond its current partnership.
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